Interim Management Statement

RNS Number : 9446Z

Northgate PLC

14 March 2013

 



14 March 2013

NORTHGATE PLC

INTERIM MANAGEMENT STATEMENT

Northgate plc ("Northgate", the "Company" or the "Group"), today publishes its Interim Management Statement covering the period 1 November 2012 to 13 March 2013.

UK

Vehicle utilisation in the four months to 28 February 2013 has averaged 88%, in line with levels experienced in the four months to 29 February 2012.  This compares to 89% in the six months ended 31 October 2012.

Vehicles on hire have fallen from 45,000 at 31 October 2012 to 44,200 at 28 February 2013, a decrease of 800 units compared to a fall of 3,900 in the same period last year. In response to this fall we have managed down the fleet by 1,100 since 31 October 2012. Through the changes implemented in the commercial area of our business and the expansion of our network, we plan to return the UK business to growth.

The increase in the regional reach of the business has commenced with the opening of a new branch in Luton on 18 February 2013.  Further branches in Brent Cross and Huddersfield are scheduled to open by 30 April 2013.

Underlying hire revenue per rented vehicle has been stable since 31 October 2012. 

The used vehicle market continues to remain strong, with residual values in line with those experienced in the year ended 30 April 2012.

Spain

Vehicle utilisation in the four months to 28 February 2013 has averaged 89% compared to 88% in the same period last year.  We returned to our target level of 90% utilisation in February.

Vehicles on hire have fallen from 32,700 at 31 October 2012 to 31,900 at 28 February 2013, a decrease of 800 compared to a fall of 5,200 in the same period last year.

The fleet has reduced by 2,200 since 31 October 2012.

Underlying hire revenue per rented vehicle has been stable since 31 October 2012.

The used vehicle market continues to remain strong, with residual values improving on those experienced in the half year to 31 October 2012.

Outlook

The tough economic conditions continue to affect both our UK and Spanish markets. As a result the business is currently trading towards the lower end of the range of market expectations.  Net debt and gearing continue to fall, and we remain focused on asset management, cash generation and cost control whilst seeking to maximise profitable growth where the appropriate return exists.

For further information, please contact:

Northgate plc                                                01325 467558
Bob Contreras, Chief Executive Chris Muir, Group Finance Director
MHP Communications                                 020 3128 8753
Andrew Jaques
Barnaby Fry
Simon Hockridge
Rosa Smith

Notes to Editors:

Northgate plc rents light commercial vehicles and sells a range of fleet products to businesses via a network of hire companies in the UK, Republic of Ireland and Spain.  Their NORFLEX product gives businesses access to a flexible method to obtain as many commercial vehicles as they require. 

Further information regarding Northgate plc can be found on the Company's website:

www.northgateplc.com

 

END

 

 

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